I have over 100 trillion reasons hanging on my wall right now.
Zimbabwe, like many countries, excited to print rather than tax to pay for spending, and as a direct result the amount that you can buy with that money but they printed went down and down. I don't mean even 2% per year, or 10% per year, I mean the 100 trillion dollar bill on the top of my stack of Zimbabwean dollars couldn't buy a loaf of bread.
Inflation is a tax on the poor and working classes that ultimately ends up in the hands of the wealthy. It means that the wage that you negotiate is always slowly (or quickly) going down year by year, anyone who tries to save for anything or budget for something has those savings drained away as the value of the currency becomes worthless, while the rich who don't have money but instead own assets see the value of the assets that see the value of the assets they own which remains relatively constant in terms of the other things in the economy that you should be able to buy for the same amount continue to grow. The average wage got bumped up by maybe 4 or 5% this year, many people didn't get a raise this year, or got like a 2% raise. My stock portfolio went up by 12% (shame I work for a living and can't live off of 12% or nothing)
Eventually, the damage caused by excessive money printing destroys the entire country because all the wealth ends up in the hands of the super powerful, while the common Man struggles just to feed themselves, and the system collapses in one way or the other. The same sort of excessive money printing was part of what led to the collapse of France leading to the French revolution, it also was what ultimately led to the collapse of the Spanish empire and the reduction of Spain from the most powerful nation in the world at that time to a footnote. (Incidentally, Spain's inflation happened under a gold and silver standard, because they were able to bring over so much silver from the new world)
Zimbabwe, like many countries, excited to print rather than tax to pay for spending, and as a direct result the amount that you can buy with that money but they printed went down and down. I don't mean even 2% per year, or 10% per year, I mean the 100 trillion dollar bill on the top of my stack of Zimbabwean dollars couldn't buy a loaf of bread.
Inflation is a tax on the poor and working classes that ultimately ends up in the hands of the wealthy. It means that the wage that you negotiate is always slowly (or quickly) going down year by year, anyone who tries to save for anything or budget for something has those savings drained away as the value of the currency becomes worthless, while the rich who don't have money but instead own assets see the value of the assets that see the value of the assets they own which remains relatively constant in terms of the other things in the economy that you should be able to buy for the same amount continue to grow. The average wage got bumped up by maybe 4 or 5% this year, many people didn't get a raise this year, or got like a 2% raise. My stock portfolio went up by 12% (shame I work for a living and can't live off of 12% or nothing)
Eventually, the damage caused by excessive money printing destroys the entire country because all the wealth ends up in the hands of the super powerful, while the common Man struggles just to feed themselves, and the system collapses in one way or the other. The same sort of excessive money printing was part of what led to the collapse of France leading to the French revolution, it also was what ultimately led to the collapse of the Spanish empire and the reduction of Spain from the most powerful nation in the world at that time to a footnote. (Incidentally, Spain's inflation happened under a gold and silver standard, because they were able to bring over so much silver from the new world)
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